U.S. factory activity slows; construction spending up solidly

U.S. factory activity hit a more than two-year low in August as manufacturers struggled with a strong dollar, weak global demand and the lingering effects of deep spending cuts in the energy sector. Other data on Tuesday, however, suggested the economy appeared to be on solid footing, with construction spending rising in July to its highest level since 2008. The Institute for Supply Management (ISM) said its national factory activity index fell to 51.1 last month, the lowest reading since May 20